SHANGHAI (Reuters) – China has established a payment versus payment (PVP) system for Chinese yuan and Russian ruble transactions in a move to reduce risks and improve the efficiency of its foreign exchange transactions. …

The PVP system for yuan and ruble transactions was launched on Monday after receiving approval from China’s central bank, according to a statement by the country’s foreign exchange trading system.

It marks the first time a PVP system has been established for trading the yuan and foreign currencies, said the statement, which was posted on Wednesday on the website of the China Foreign Exchange Trade System (CFETS).

PVP systems allow simultaneous settlement of transactions in two different currencies. …

CFETS said it plans to introduce PVP systems for yuan transactions with other currencies based on China’s Belt and Road initiative, and complying with the process of renminbi internationalization.

It has long been my view (my written view since the last decade) that gold would be involved in backing a replacement to the US dollar.

While some like US President Trump’s tough talk in various areas (like trade and banking sanctions), nations like China are taking steps to protect themselves from aspects of his threats.

And while the gold-petro-yuan and China’s new PVP are NOT the final replacement to the US dollar as the world’s primary reserve currency, these are steps that will weaken US dollar dominance.

Dethroning the US dollar will cause massive economic problems for the USA. Much more than almost anyone believes. The standard of living in the USA has been raised/subsidized for years because of the status of the US dollar. That status is weakening. This will ultimately severely hurt the USA.